Entertainment event ticket purchase and exchange system

ABSTRACT

An electronic ticket exchange system has a market-making system by which patrons submit bids over a limited time period for seats of different quality. A trading system provides for a secondary market in which patrons who have purchased tickets for an event can sell them to other patrons. All of the rights associated with a ticket, such as entry into the venue, are stored in electronic form. An electronic venue entry control system verifies that a person owns an electronic ticket property right, and authorizes the privileges associated with the ticket, such as entry to the venue. A seating system is employed to determine an optimal seating configuration based upon patron-specific preferences, after the initial sale of tickets and prior to entry into the venue.

FIELD OF THE INVENTION

The present invention is generally directed to the sale and use oftickets for entertainment events, such as sporting events, performances,concerts, and the like, and more particularly to an electronic ticketexchange system which maximizes the revenue that artists, promotersand/or entertainment venue owners can receive from events, while at thesame time facilitating the ability of patrons to obtain and tradeelectronic tickets as desired, as well as to gain entry to entertainmentevents.

BACKGROUND OF THE INVENTION

Most entertainment events require the attendees of those events topurchase a ticket in order to gain entry into the venue at which theevent is being held. Conventionally, there are various avenues by whichpatrons can obtain tickets. One such avenue is to purchase them directlyat the site of the venue itself, for example immediately prior to theevent, at a pre-established face value. For popular events, it isdesirable to purchase the tickets ahead of time, particularly if theevent is likely to be sold out or preferential seating is desired. Insuch a situation, it may be inconvenient to travel to the venue at suchan earlier time. In many cases, therefore, it is possible to obtaintickets through a ticket agent. Typically, such purchases can be madetelephonically, via the Internet, or at distributed ticket saleslocations that are more convenient to the potential attendees.Generally, the ticket agent has an ongoing relationship with the eventvenue, by which the venue owner authorizes the ticket agent to sell anddistribute paper tickets for the individual events to be held at thevenue. In some cases the ticket agents handle all of the tickets for anevent, whereas in other cases they may only sell excess tickets that thevenue owner is not able to directly sell. In these arrangements, theticket agent may charge the patron a handling and/or distribution fee.

The third avenue for the patron is to obtain tickets through athird-party broker who purchases a number of tickets, usually forpopular events, and resells them to the patrons. Quite often, thetickets are resold at a price which is significantly above the facevalue of the tickets. Typically, a broker may bundle the ticket withtravel arrangements, memorabilia, etc., to justify the increased priceof the total package provided to the buyer. All of the profit thatresults from selling the tickets at a higher value remains with thebroker; none of it flows back to the venue owner.

As a fourth mechanism, individuals may buy tickets from the originalpurchasers, and resell them to others at a significantly higher price.These individuals are sometimes known as “scalpers”. Again, all of theprofit from the higher price remains with the scalper, rather thanflowing back to the venue owner, promoter or artist. These activitiesare usually illegal, and can be found almost anywhere.

Currently, prices for event tickets are fixed well prior to the event.Depending upon the popularity of the event, the venue may be full tocapacity, empty, or partially filled at the time of the event. Forhighly popular events in which the venue is filled to capacity, thevenue owner may not realize the maximum potential revenue for thatevent, because the patrons may have been willing to pay more, asevidenced by the existence of brokers and scalpers. Conversely, when thedemand for an entertainment product is much lower, such as in the caseof losing athletic teams, less popular acts, and the like, the ticketsmay be overpriced, resulting in lower attendance. By lowering the pricesfor the tickets, it is likely that more people will attend the event,resulting in more seats being filled. Even though the revenue per ticketmay be lower in such a case, ancillary benefits arise from the abilityto offer a fair value for lower-demand entertainment events. Forinstance, there is likely to be increased loyalty to the venue owner, orteam, since the patron only paid the perceived value of theentertainment. In addition, increased sales from non-ticket revenuesources, such as parking, concessions, merchandise sales, and the like,will likely result from the increased attendance. These non-ticketsources of revenue are generally quite profitable, since the incrementalcost necessary to accommodate increased attendance is relativelyminimal.

In the conventional arrangement, one physical ticket, e.g., a paperticket, is generated for each available seat at a venue, and eachattendee is required to present a ticket to gain entrance to the venue.This requirement for physical possession of tickets places a restrictionon the patron's ability to freely exchange tickets, particularly as thetime of the event draws near. Typically, if a purchaser of a ticket isunable to attend the event, he or she may attempt to sell it or give itto an acquaintance, broker or scalper. In some cases, the purchaser mayattempt to dispose of the ticket through an online auction site.However, this procedure has time constraints, since the seller must beable to physically deliver the ticket to the purchaser in time for it tobe received prior to the event. Often, the purchaser is left with theoption of simply forfeiting the cost of the ticket, or reselling it to abroker, usually at a substantial discount to its fair market value.

SUMMARY OF THE INVENTION

It is an objective of the present invention to provide a system for thesale, exchange and use of tickets which enables a venue owner tomaximize the potential revenue that can be achieved with each event. Itis a further objective of the invention to provide a system whicheliminates the need for physical bearer-type tickets, and therebyfacilitate the patron's ability to more easily exchange tickets.

In accordance with the present invention, these objectives are achievedby means of an electronic ticket exchange system by which venue ownerscan sell tickets to patrons at a fair market value for each event, andthe patrons can more easily trade and transfer the tickets among oneanother after they have been purchased from the venue owner. Tickets foran event are initially offered to the public by the venue owner, using amarket-making system. In this system, patrons submit bids over a limitedtime period, for seats of different quality. Once the limited biddingperiod expires, an initial price is established for each quality ofseat, on the basis of the submitted bids and an econometric model thattakes into account certain constraints and other factors. The ticketsare then sold to the public at that price. Thus, the owner is able toestablish a fair-market value for each quality of seat at each event,rather than being locked into a pricing structure that may not optimizeprofits for the owner.

Another feature of the invention is a trading system which provides fora secondary market in which patrons who have purchased tickets for anevent can readily sell them to other patrons, without requiring theservices of a broker or the like. The ability to freely exchange ticketsis facilitated by the fact that physical tickets are not required.Rather, all of the rights associated with a ticket, such as entry intothe venue, parking privileges, designated seating, etc., are stored in aelectronic form. Hence, all trading can be performed electronically,using various methods, without the need to exchange any physicalmaterial between the buyer and the seller.

Coupled with the electronic ticket, the invention provides an electronicvenue entry control system. Upon presentation of one of variouspredetermined forms of unique identification, the control systemverifies that a person owns an electronic ticket property right, andthen authorizes the privileges associated with the ticket, such asaccess to parking facilities, entry to the venue, purchase ofconcessions and/or merchandise, and the like. As a further feature,specific seats are not assigned at the time the tickets are purchased.Rather, a seating system is employed to determine an optimal seatingconfiguration based upon patron-specific preferences, after the initialsale of tickets and prior to entry into the venue. The specific assignedseats are then indicated to the ticket holder at the time of entry.

In a preferred implementation of the invention, patrons who regularlypurchase tickets become members of an organization associated with theticket exchange system. All transactions carried out within the systemcan then be easily accomplished through a single membership number,which is permanent and unique to the member. Each such member can beprovided with a contactless card, or suitable mechanism which interfaceswith the entry system to provide access to the venue, and parking ifappropriate. Examples of such include key fobs, PDAs, cellulartelephones, and other such devices which can store and transmit theunique member identification. The identification device can also be usedto make purchases of merchandise, concessions, parking and the like atthe venue. Non-members can also utilize the system, and gain accessthrough temporary membership numbers that are unique to an individualevent.

These and other features of the invention are described in detailhereinafter, with reference to the accompanying drawings.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 is a block diagram illustrating the relationship of partiesinvolved in conventional entertainment events;

FIG. 2 is a general block diagram of the major components of anelectronic ticket exchange system in accordance with the presentinvention;

FIG. 3 is a block diagram of the payment system;

FIG. 4 is a block diagram of the entry system; and

FIGS. 5-8 are flowcharts of operations which occur with the electronicticket exchange system.

DETAILED DESCRIPTION

The present invention comprises an electronic ticket exchange systemthat can be employed in connection with any type of entertainment eventin which proof of entitlement to entry, such as a ticket or the like,must be given to provide a patron with access to the event. Tofacilitate an understanding of the principles which underlie theinvention, it will be described hereinafter with occasional reference toits application in the context of particular examples of entertainment,such as sporting events. It will be appreciated, however, that thepractical applications of the invention are not limited to thesespecific examples. Rather, its general applicability to all types ofentertainment events will be apparent from an understanding of thefollowing description.

A number of different entities may be involved in entertainment events.These entities, and their conventional relationship to one another, aredepicted in the block diagram of FIG. 1. Typically, an entertainmentevent is defined as a presentation by an artist 1 at a venue 2 at adesignated date and time. Depending upon the nature of the event, theartist could be an athletic team or individual athletes, a band, actorsand/or actresses, or other types of performers. Similarly, the venuecould be an athletic stadium, a hall or concert center, a golf course,or other suitable form of property where access to an event iscontrolled. Typically, a promoter 3 creates interest in the event toentice attendance by spectators. The promoter may be responsible forscheduling the venue, negotiating contracts, and handling the variousadministrative tasks associated with the entertainment event. Dependingupon the type of entertainment, the artist, promoter and venue ownercould all be closely related, or could be independent of one another. Inthe case of athletic teams, for example, the venue owner and thepromoter may be the same entity.

The patrons 4 are those people who purchase tickets in order to observe,enjoy and participate in the entertainment being provided. The patronscan be individuals, corporations, traders and the like. They could alsobe any one or more of the artist, venue owner and promoter themselves,who may distribute the tickets as gifts or promotional offers.

Ticket agents 5 are third parties whom the venue owners engage to selland distribute tickets to entertainment events, in lieu of, or inaddition to, directly selling the tickets themselves. Brokers andscalpers 6 are third-party traders who purchase tickets, primarily forpopular events, and resell them to patrons at prices that are typicallygreater than, but sometimes less than, the face value of the tickets.The brokers can be small-scale businesses, such as ticket brokeragencies, or individuals. Scalpers are typically individuals. Thebrokers and scalpers may obtain the tickets directly from the venue, orfrom ticket agents, or from patrons.

In accordance with the present invention, an electronic ticket exchangesystem replaces the functions of the ticket agents 5 and brokers 6, andoffers added value to the venue owner and the patron. The electronicticket exchange system is sponsored by the venue owners. The basiccomponents of the electronic ticket exchange system are illustrated inthe block diagram of FIG. 2. The electronic ticket exchange systemincludes a patron interface 10 by which patrons can purchase tickets fordesired events, as well as trade purchased tickets with other patrons. Apatron's access to the system can be obtained by a variety of differentmeans. For example, the patron can interact with the system by means ofthe Internet, using a standard web browser, PDA, or the like. For thispurpose, the interface is supported by web servers 12 for transmittingthe appropriate HTML pages, or the like, to permit the patron to viewinformation regarding available events and enter requests for tickets.To accommodate patrons who access the internet via cellular phones orother wireless devices, the web servers can include one or more wirelessaccess protocol (WAP) servers 13. Alternatively, the patron can performthese operations by means of a telephone system 14 or an interactivetelevision system 15 which also forms part of the patron interface 10.In a telephone system access, the patron might speak to a live operator,or use an automated menu system to obtain information and enterrequests. As a further component, the patron interface might includeseveral walk-up kiosks 16 at distributed locations, for example inshopping malls, retail outlets, convenience stores, and the like. Suchkiosks can also be located at the site of the venue itself, for directaccess by the patrons or operation by ticket sales personnel at thevenue's box office. Alternatively, the venue box office can sell andtrade tickets via a web browser interface.

The patron interface 10 enables the patron to perform three fundamentaltypes of operations, namely (1) to obtain information about events atone or more venues affiliated with the system, (2) purchase tickets todesired events, and (3) exchange tickets among multiple patrons. Inaddition, the patrons may be able to order merchandise and other goods,link to related sites, etc. Information regarding the events that arescheduled for the affiliated venues is stored in a venue/event database18. When a patron first accesses the system via the interface 10, a listor menu of the affiliated venues or events can be provided, to permitthe patron to make a selection. Preferably, the views presented by theinterface are customizable, so that the patron can view all venues andthen select a specific event, or view all events and then select anappropriate venue. Seating maps 20 for the affiliated venues are storedin conjunction with the database 18. Once the user has selected aparticular venue and event, the appropriate seating map can be displayedto permit the patron to assess the relevant information for variouscategories of seating quality, when either the Internet access or thewalk-up kiosks are employed. In the case of telephone access, theseating map can be displayed to the telephone operator.

In a preferred implementation of the invention, the patrons who accessthe system are members of an organization affiliated with the system. Aprofile of information pertaining to each member is stored in a database22. Each profile might include, for example, a credit card, bankaccount, or other source of funds that are to be used when tickets arepurchased, seating preferences, group memberships, and the like. Whenthe patron purchases tickets for a particular event, informationregarding the method of payment is retrieved from the database 22 andforwarded to a payment system 24. At the same time, information isrecorded which indicates that the user has purchased one or more ticketsfor the event. This information could be stored in the patron profiledatabase 22, or the venue/event database 18, or both.

The payment system 24 processes all of the monetary transactions whichoccur within the ticket exchange system. When a need to confirm arequest to purchase tickets occurs, the price of the tickets isforwarded to the payment system 24, where it is debited against the formof payment which has been established by the patron, e.g. credit card,debit card, cash balance on deposit, designated checking account, etc.If desirable, the payment system can ensure that the proper funds areavailable and confirm that fact to a central server 26 before thetransaction is completed.

The payment system 24 can also be used to facilitate other types ofpurchases by the patron. As described previously, the patrons who accessthe ticket exchange system can be members of an organization. Theirmembership can be indicated by means of a membership card or a tokenwhich serves as an identification device. The membership identificationdevice can take any of a variety of forms, and preferably is one whichis capable of electronically, optically or magnetically storing amembership identification number and transferring that number to atransaction device, through either physical contact or in a contactlessmanner. Examples of suitable identification devices include smart cards,magnetic stripe memory cards, RFID devices such as key fobs, tags,watches, etc., barcoded tags and the like, personal digital assistants(PDAs), wireless telephones, and biometric features. Whenever the membermakes a purchase at the venue, the identification device can be used todebit the member's account via the payment system, in lieu of cash.Thus, the identification device can be used to pay for parking at thevenue, as well as purchase concessions, services and merchandise whileattending an event.

A more detailed illustration of the implementation of the payment systemis illustrated in the block diagram of FIG. 3. A core payment server 28communicates with the central server 26 and receives informationregarding ticket purchases by patrons. The amounts of purchases areforwarded to a bank card processing agency 30, which verifies thepatron's credit or debit card and provides an authorization code for thetransaction. In the case of a cash balance on deposit, or pre-approvedcredit limits, the verification can be performed internally within theserver 28.

Local payment servers 32 can be located at each of the individualvenues. The local servers communicate with identification device readers34 at the concession stands and other points of sale. In the case ofparking payments, the parking facilities can be equipped with portablereaders 36 which communicate with the local servers via radio wavecommunication. The local servers 32 receive information as purchases aremade, and forward this information to the core payment server 28. Thecommunication of this data to the primary server can occur in real time,or in a batch mode on a regular basis. In the case of real-time modeoperation, it may be preferable for the local servers to communicatedirectly with the credit card agency 30, to authorize transactions asthey are being made. The core payment server 28 consolidates all of thetransaction information to provide reports to the patrons regarding theactivity on their accounts. Preferably, the patrons can access thesereports via the web access server 12.

An associated advantage that arises from the use of the membershipidentification devices to make purchases is the fact that it permits thedetailed item transaction data to be collected for later mining andanalysis. For instance, the venue owners can determine the types ofmerchandise, food and drinks that are the most popular at differenttypes of events. This data can even be categorized according to qualityof seating section, so that the various concession stands are stockedappropriately. It also facilitates the ability to target various groupsof patrons, and direct actionable marketing to them on a real-timebasis.

One of the principle advantages of the electronic ticket exchange systemof the present invention is the fact that physical tickets are notrequired to gain entry into the entertainment venue. Rather, thepatron's purchase of a ticket is electronically stored in the system,e.g. in the databases 18 and/or 22, and identifies the patron's right toenter the venue for a specific event. To this end, another component ofthe ticket exchange system is an entry system 38 located at eachaffiliated venue. Upon arrival at the venue, the patrons need onlypresent suitable forms of identification which confirm that they are thepersons having electronic tickets registered in the system. In thepreferred implementation of the invention in which the patrons possessmembership identification devices, those devices can be used to gainentry to the venue, as well as make purchases as described previously.Hence, a single membership identification device can be re-used at allof the venues which are affiliated with the electronic ticket exchangesystem.

A more detailed illustration of the entry system is illustrated in FIG.4. Each venue has one or more entry servers 40 affiliated with it.Preferably, the entry server is located at or very near the site of thevenue, and communicates with the central server 26 to receive dataregarding those patrons whose records indicate that they possess anelectronic ticket for admission to a given event at that venue, as wellas guaranteed parking and other rights associated with an electronicticket.

An access-control device 42 is connected to the server 40 to provideadmission to the venue upon presentation of the proper identification.Depending upon the number of entry locations at the venue, amultiplicity of such entry devices may be employed. Each device isequipped with a reader 44 to receive the appropriate information fromthe attendee's identification device, and provide the patron's identityto the server 40 to confirm ownership of the proper electronic ticketfor the event. Upon receipt of confirmation from the server, approval isgiven to permit entry. Depending upon the nature of the access-controldevice, the approval can take different forms. For example, in oneimplementation the access-control device can be turnstile or othermechanically-controlled gate. In this case, the approval can be releaseof the gate to permit one person to pass. In another instance, theaccess control might be manually enforced, such as a rope that iscontrolled by a security person. In this case, the approval could simplybe a message on a screen, or a colored light to indicate whether aperson should be permitted to pass, or stopped.

Alternative forms of identification might be employed for attendees whodo not possess membership identification devices. For example, abarcoded paper or card might be issued when the ticket is purchased, orthe attendee might provide a driver's license number or social securitynumber. A suitable barcode reader and/or keypad can be included with theaccess-control device for each of the possible types of input.

Since the admission to the venue does not require possession of aphysical ticket, if general seating is not to be employed it may bedesirable to provide each patron with an identification of theparticular seat that has been assigned to that person. For this purpose,a printer 46 can be located in the device to print a simple paper ticketwhich indicates the date, seat number, event name, and the like, for useby the patron to present to an usher and/or locate the seat.

For most venues, such as athletic stadiums, concert halls, and the like,the entry system is likely to be permanently installed at the venue.Certain types of events, however, take place at different locationswhere it may not be practical to install such a system on a permanentbasis. Examples of such include golf tournaments, automobile races,wrestling events, tennis matches, outdoor concerts, and the like. Tofacilitate the use of the electronic ticket system for these types ofevents, a portable entry system can be employed, to be set up at thevenue for the duration of the event, and then removed thereafter.

One of the limitations associated with conventional physical ticketsystems is the fact that seats are usually assigned at the time thetickets are purchased. This approach can result in less than optimalseating configurations, particularly for popular events. For example, alarge group of people may not be able to purchase contiguous seats dueto previous assignments of seats which are dispersed throughout adesired seating area. However, in the system of the present invention,it is not necessary to assign specific seats at the time the tickets arepurchased. Rather, it is only necessary to record the fact that each ofthe patrons has purchased a particular level or quality of seating atthe time of the purchase. The level or quality of seat can be based upona number of factors, such as price and location. When a ticket ispurchased, the patron can be informed of the gate or portal to be usedwhen entering the venue, without reference to a particular seat.

At a suitable time prior to the event, a seating system 48 determines anoptimal seating configuration for all of the tickets which have beenpurchased. This determination takes place on a continual basis, and isupdated to reflect the trading of tickets and new patron preferences.The optimal configuration is based upon a set of parameters which areentered by the patron, such as quality of seats, number of contiguousseats, and preferences such as adjacent an aisle, close to an exit, etc.These parameters can be entered at the time the tickets are purchased,or some of them can be previously recorded as part of the patron'sprofile in the database 22. For each different quality of seats, theseating system assigns individual seats to the purchased electronictickets. These seating assignments are sent to the entry system server40 for the venue just before the doors or gates are opened foradmission. When the patron enters the venue, the seating assignments arequeried and printed, or otherwise provided to the patron. The dynamicassignment of seats in this manner provides greater flexibility,resulting in greater convenience to the patrons. For instance, even if anumber of patrons purchase their tickets at separate times, they willstill have the opportunity to all sit together if they have indicatedthat as a preference. This greater flexibility is likely to result inincreased ticket sales.

Another of the principle advantages of the fact that a ticket is held inthe system in electronic form, rather than requiring physical possessionof tickets, is the ability to more freely exchange tickets amongpatrons. More generally, the system of the present invention facilitatesthe establishment of an open market for tickets, which enables theirprices to be matched to the intrinsic value of the underlying event, inaddition to fostering their transferability. In essence, the tickets canbe bought and sold in a manner similar to the initial sale andsubsequent trading of securities. The initial sale of the tickets, orinitial offering, is conducted by the venue owner. Subsequent trading ofthe tickets takes place among the patrons, in a secondary market that isendorsed by the venue owners.

A hybrid of a Dutch auction approach (the lowest bid that stillqualifies) and a regular auction approach can be used to set the initialprice of tickets. Such a hybrid bidding approach is likely to result inoptimal revenue generation for the venue owner, and be more akin toinitial and direct public offerings that occur in stock markets, foreach quality of seat section. For all types of tickets, includinggeneral admission, season tickets, luxury boxes, permanent seatlicenses, and the like, the patrons can submit bids for the ticketrelated to that event, prior to the event's occurrence. This increasedaccess to tickets is likely to result in additional demand and anincreased market for tickets and to translate into higher market valuesfor the tickets. A pricing window can be established for patrons tosubmit their bids. For example, the pricing window can be two weeks inlength, but can vary anywhere from one day to a month or more, independence upon factors such as the type of event, venue ownerpreferences, and patron demand. This pricing window should preferably becoordinated with the venue owner's own advertising and promotionalefforts for the event. By having a pricing window for bid submissions,patron inconveniences such as long lines, difficulty in accessingwebsites, and busy telephone numbers can be eliminated. The lead timeand length of the window for submitting these bids can be co-determinedby the ticket exchange system and the particular venue owner.Establishing a standard lead time for bid submissions is likely toprovide behavioral benefits for the patrons. For example, if every venueowner requires bids to be submitted between four and six weeks prior toan event for general admission and/or eight to ten weeks prior to aseason for season tickets, patrons will learn this process and becomecomfortable with this approach of selling tickets over time.

In addition to marketing efforts by the venue, promoter, etc., thesystem provides each patron with adequate information for each event sothat the patron can make a well-informed bid for each event's ticket.This information could include such items as:

-   -   comparable ticket selling prices for identical/similar recent        events or events that are deemed to be similar, analogous to the        approach used in the real estate market for providing guidance        to homebuyers;    -   market-determined prices, if available, for a specific venue        along with the attendance at the venue for a particular event        measured as a nominal amount and percent of capacity;    -   ticket face values, if applicable, for a specific venue along        with the attendance at the venue for a particular event measured        as a nominal amount and as a percent of capacity;    -   the most recent ticket market values and prior year ticket        market values for the venue in question;    -   a gate of entry for a given quality of seat upon which the        patron is bidding;    -   a minimum level bid price for each quality of seating section        for each venue and each event;    -   a list of marquee performers for each event at the particular        venue. If the event is sports related, this could include an        injury report and any important trade information;    -   performance statistics of performers, if relevant;    -   patron postings of performance reviews for an entertainment        event;    -   where relevant, current year and prior year won/lost records;    -   timely press or newswire related articles about the event,        marquee performers, and/or venue;    -   audio and video links about an event to enhance the experience        for the patron by providing a sense of participation in        anticipation of the event prior to the event, and thereby create        increased interest surrounding the event. Any other type of        information which would assist the patrons in making informed        bids can also be included.

In a preferred implementation, patrons submit “blind bids” during thepricing window so detailed pricing information about current bids forthe event being sold will not be available to other patrons. By using ablind bid system, price gaming amongst patrons is much less likely tooccur while the venue owner will be much more likely to receive thepatron's best offer price, resulting in an optimal initial selling pricefor the tickets rather than the lowest common denominator that occurs ininteractive auction approaches. Also, patrons have significantly lessincentive to review their bids immediately prior to the close of thepricing window, resulting in a reduction in excessive peak perioddemands on the trading system since there is no minimum level bid tobeat. However, some level of concise and simple real-time guidance mightbe provided to patrons. The optimal type and level of dynamic biddinginformation, such as pricing (e.g., range, etc.), volume, etc. toprovide to patrons for the bidding process can be empiricallydetermined.

In one embodiment, patrons can only place one active bid per quality ofseating section, however they can place a bid in as many quality ofseating sections as they desire. At the time a patron enters multiplebids, the patron will be required to indicate whether all of the bidsare to be live (e.g., all bids that are above clearing price will bepurchased) or if the patron only wants to purchase a ticket at thehighest quality of seat for which a qualifying bid was submitted. Also,patrons can update, change, and/or cancel their bids at any time duringthe initial ticket pricing window period, up until the time the pricingwindow closes.

Once the pricing window closes, one singular selling price is determinedfor each quality of seat section, based upon the winning bids that wereequal to or greater than the singular price all patrons in that sectionwere willing to pay. By having one singular selling price, patrons areless likely to be upset about a purchase after it is made becauseeveryone in their quality of seating section will have paid the sameprice. Those patrons who bid higher can be given higher priority withrespect to their seating preferences. As long as a patron's bid is equalto or greater than the winning auction price, he or she will beguaranteed a ticket, absent any ties. If more patrons submit bids equalto the winning auction price than the number of available seats,resulting in the need to establish a tie breaker mechanism, a set ofrules can be used to select the winning bidders. These rules couldinclude: (1) timing of when the ticket was bid upon, with an earlier bidbeing better than later, (2) membership status of the patrons, (3)number of events purchased/traded through the system, (4) higher maximumbid levels during the initial sales period result in a higherpreference, etc.

A market system 50 functions to establish each event's market value andthe initial price for each quality of seating section, based upon thebids that were submitted. For example, the pricing could be determinedin accordance with an econometric model that has as its primaryobjective to optimize the economic benefit for the venue owner (and anyother parties that participate in ticket revenues, concession, andmerchandise sales), while considering all of the most important andrelevant tradeoffs and constraints impacting the economics for the eventsuch as ticket revenues, concession and merchandise sales, televisionrevenues, radio revenues, marginal costs for each additional ticketsold, etc. Once the initial ticket prices are established, and anynecessary tiebreaker criteria considered, only patrons who have won abid are notified of the success of their bids and the auction winningpricing for their bids. This notification is preferably sent within afew days of the bidding window closing, and the member's account isautomatically billed through the payment system 24. Also, secondarytrading is allowed immediately upon final determination andcommunication of the initial ticket selling price. The method fornotification for each patron's winning bid can be as follows:

-   -   if a final winning bid was submitted on the Internet, an email        is sent to the email address stored in the database 22 for the        member who won the bid;    -   for final winning bids submitted in distribution channels other        than the Internet: if available, an email is sent to the email        address on record for the member; if an email address is not        available, a notification is sent via automated voice response        systems, first-class mail, pagers or the like;    -   for situations where immediate notification is necessary, such        as for playoff games, etc., a notice is first sent via e-mail,        however when an e-mail address is not available the patron is        notified via automated voice response systems, paging systems,        or the like, if sending the notice out by first-class mail would        not be timely;    -   the patron's membership profile in the database 22 is        automatically updated so that the patron can access the profile        to determine the success or failure of a bid via the Internet,        telephone, or the venue itself, if so preferred.

Since one of the system's primary objectives is to increase attendance,and not merely sell seats, a trading system 52 allows patrons to sell,trade or otherwise transfer their tickets in a fair, efficient and fullyinformed manner prior to an event, in case the patron cannot attend theevent and desires to sell the ticket. It is preferable for the venueowner to sell a seat and have a person in attendance at the eventbecause the individual who attends an event is likely to enjoy theentertainment experience and thereby build loyalty, as well as purchaseparking, concessions, and possibly even merchandise, versus a situationwhere a patron does not attend and purchases nothing other than theseat. Furthermore, getting new patrons to attend an event when a seasonticket owner cannot attend is more likely to result in additionalmerchandise sales because the new patron will not have likely purchasedthe merchandise in the past.

The trading system provides and facilitates a liquid and efficientmarket for secondary trading of tickets for events and venues. Theliquidity for tickets will likely result in an additional incentive forpatrons to purchase tickets to events and will likely translate intohigher market value for these tickets. The secondary trading of ticketsis analogous to the secondary trading that occurs for stocks, withunique identification symbols for each event (e.g., akin to a company'sstock ticker); up-to-the-second posting of bid/ask spreads for eachticket for each event being sold; and a market trading system thatmatches various types of orders placed by sellers and buyers.

The trading system 52 functions purely as a broker providing a marketthat allows seamless trading of tickets by matching willing and informedbuyers and sellers. When trades are made between patrons, the tradingsystem communicates with the payment system 24, to appropriately debitand credit the accounts of the buying and selling patrons.Alternatively, a third-party payment system which facilitatesconsumer-to-consumer payments, such as PayPal.com or BillPoint.com, canbe associated with the trading system to carry out the financial portionof the transaction associated with the trading of tickets. For eachsecondary market trade that is executed, there is a bid and ask (offer)price for the trade that must eventually converge to result in a match.Analogous to stocks, the level of the bid/ask spread is dependent uponthe liquidity of the tickets related to the event in question, with moreliquid trading resulting in smaller spreads.

The trade prices under an exchange approach where the trading system isacting as a broker result in a situation where the buyer and seller arepaying the same market price, although not necessarily the same totalprice when fees are accounted for. The market price may be identical,yet the fees could vary for the buyer vs. the seller or be the same. Forinstance, a commission could be charged to both the buyer and seller fora trade that takes place at a market price, or the seller only, or thebuyer only. The trading system can quote information such as the currentbid/ask spread, the last matched trade price, etc.

The trading system can allow for ‘fill or kill’ trades for certain typesof tickets where all the tickets are sold to a purchaser or group ofpurchasers, who has an identical number of tickets to be purchased as aticket seller, or group of sellers, is trying to sell. In other words,the sale order is not executed unless the entire block of tickets can besold (e.g., if only a portion of the tickets can be sold, the trade doesnot take place). This could likely apply to season ticket holders wherethey are selling specific seats that can not be dynamically movedaround.

Patrons can place orders using terminology that is analogous to theterminology used for the stock markets. By using similar terminology tostock markets, the level of necessary patron training is significantlyreduced and the likelihood of greater patron acceptance increased.Patrons have the choice of placing all kinds of orders including: marketorders (sell or buy at current market price); good-till-canceled orders(sell or buy the ticket at a specified price until the trade is executedor the patron cancels the order); day limit order (sell or buy an ticketat a specified price for the duration of a specific day); stop-lossorder (if the ticket's value falls to a specified level the ticket willbe sold); and the like.

The foregoing features of the invention provide a great deal offlexibility in the benefits associated with the sale and exchange oftickets. For instance, the benefits can be categorized across twodimensions, namely different types of electronic tickets and differenttypes of membership. More particularly, a ticket represents a set ofrights the patron obtains as a result of owning a particular type ofticket. These rights can be bundled in three different categories,standard tickets, restricted tickets, and temporary tickets.

Standard tickets are fully tradable with no restrictions, and allow theowner complete control and discretion over how the ticket is ultimatelyused (e.g. enter the venue for the event, trade the ticket at marketvalue, or assign the ticket). Also, standard tickets include theapplicable ticket property rights that are inherent to the specificticket purchased, as described hereinafter.

Restricted tickets only provide access to an event for a patron. Theserestricted tickets might typically be used in the following situations:college students at college athletic events, employees of the venue orpromoter, fan club members for certain entertainers, and the like.Restricted tickets can also be used for promotional give-aways, sellingtickets to events where a face value or a discount to market value isdesired by the entertainer/promoter, reserved tickets for certainpatrons, etc. Restricted tickets allow patrons access to the event andpossibly select property rights such as parking, but they do not possessany other typical ticket rights. Restricted tickets could be inhibitedfrom being traded on the secondary ticket market.

Other restrictions, as deemed necessary, could also be placed onrestricted tickets. For example, since the venue owner will probably notwant to provide an incentive for permanent seat license (PSL) holders toretain their seat licenses and make unjustified profits by trading theirtickets on a secondary exchange, the venue owner can restrict seatinglicense tickets so that they can only be traded at their face value,rather than at market value. Venue owners could then provide seatlicense holders with an option to sell their seating license back to thevenue owner or continue holding their seating license and all the rightsthe seat license includes.

Temporary tickets can be used for special circumstances. Three exemplarytypes of temporary tickets include gift tickets, event tickets, andsub-account tickets. Gift tickets can be made available for members andnon-members to give to a party of their choice. Event tickets aretickets for patrons who are not members of the system but still want toattend an event. Sub-account tickets can be used by families (or groupsor acquaintances) who often attend events together and do not want tohave a large number of membership numbers that have to be entered everytime they purchase a group of tickets to sit together. Sub-accounts arelinked to a member's primary account. For example, a member may beassigned the membership number “0001” for the primary account. Thevarious sub-accounts under that primary account are then designated bythe numbers “0001-01”, “0001-02”, “0001-03”, etc. The owner of theprimary account has control over all of the sub-accounts, and allcharges made on the sub-accounts, if permitted, are assessed to theprimary account.

Temporary tickets can have the following privileges associated withthem:

-   -   ability to bid for general admission tickets for any event        initially sold on the system. Patrons who are not members of the        system are not entitled to place a bid for any tickets other        than general admission tickets;    -   ability to buy and sell any tickets for events that are traded        on the system's secondary market. Sub-account tickets under a        full-time member may not have these trading privileges;    -   entry into the venue, if a ticket is owned;    -   all property rights (e.g., guaranteed parking, etc.) associated        with the ticket the patron buys for that particular event.

In addition to different types of tickets, different categories offull-time membership can be offered. A basic membership can provide thefollowing privileges:

-   -   ability to bid for tickets for any event initially sold on the        system. This includes general admission, season tickets, luxury        boxes, etc.;    -   ability to buy and sell any tickets for events that are traded        on the secondary market on a member's own account;    -   entry into the venue, if a ticket is owned;    -   all property rights (e.g., guaranteed parking, etc.) associated        with the type of ticket the patron buys for that particular        event;    -   ability to select and rank personal seating preferences and then        have these seating preferences considered when seats are        assigned;    -   lower transaction fees when purchasing tickets;    -   ability to use the membership card to purchase merchandise and        concessions at the venue at selected concession and        merchandising booths;    -   participate in promotional offerings during an event by the        venue owner such as special discounts, two-for-one promotions,        etc.

In addition, members can pay an annual fee which entitles them to ahigher, or premium, level of membership. Premium members can enjoy thefollowing additional membership privileges:

-   -   ability to participate in co-promotional activities for relevant        products such as sporting goods, clothing, and the like. Patrons        may be entitled to cash discounts at affiliated shopping        outlets;    -   free services that are offered by strategic alliance partners,        such as Internet-based sports services, and the like;    -   random drawing promotional activities where the patron will have        the ability to win back-stage passes, meet with the        entertainers/players, etc.

The following types of devices, with their related privileges, can beused for entry into each of the affiliated venues:

-   -   Smart cards, PDAs, wireless telephones, contactless cards,        bar-coded and magnetic stripe cards, RFID devices, biometric        features, and the like can be used by full-time members,        regardless of the type of membership. The devices can be used        to: (a) provide entry into the venue, (b) provide entry into        guaranteed parking, (c) allow patrons to purchase either        merchandise or concessions at the venue; etc.    -   any of these types of devices can be employed for all        non-members who want to attend an event at a venue that uses the        system's services. This includes gift certificate cards (gift        tickets), affiliate cards for full-time members (sub-account        tickets), and infrequent patrons who want to purchase their        tickets on an event-by-event basis (event tickets), rather than        become full-time members. The privileges associated with these        tickets comprise entry into the venue and any related property        rights that are associated with the type of ticket the patron        owns.

Membership rights and privileges are distinct from ticket propertyrights. Ticket property rights are particular to a specific event andconstitute the basic commodities that can be purchased and traded bymembers of the system. Tickets are not physical in nature, but ratherthey are electronic proxies for the associated rights. Membership rightsare benefits that the patron receives, and these rights can not betraded. Membership rights vary by the type of membership the patronpossesses.

Ticket property rights are linked to a patron's membership. This link isunique and each membership is only allowed one set of ticket propertyrights for each individual event. The ticket has all the property rightsassociated with conventional physical tickets, plus more. Identical tophysical tickets, ticket property rights authorize entry into theentertainment event. This is the most basic of property rights. Ticketsmight also possess other property rights such as entry into guaranteedparking, entry into luxury boxes, and various benefits provided by thevenue owner at the venue.

Season tickets present a specialized case of the general situationdescribed thus far. Whether season ticket holders have purchased aseating license or not, there is likely to be a general feeling byseason ticket holders, and even venue owners, that having a seasonticket entitles that individual to priority on buying a season ticketthe following season, even though it is a new season. While thisproperty right is perceived rather than actual (other than in the caseof seat licenses), a value can be attributed to this right withoutjeopardizing the intangible goodwill this inherent right conveys toseason ticket owners. If this inherent property right does not continue,existing season ticket owners might feel that the goodwill they havedemonstrated for a franchise (e.g., purchased season tickets in good andbad times) has not been acknowledged or rewarded.

Existing season ticket owners will likely want to be differentiated fromnew bidders for season tickets, rather than be considered just anotherperson in a pool of bidders. In fact, it is likely that season ticketholders will want to be differentiated in a way that is directlybeneficial to them.

For those venue owners who want to provide such an inherent propertyright to their existing season ticket owners, the following approach canbe employed. All patrons who are interested in renewing their seasontickets for their current quality of seat section can be required tosubmit a bid during the market making process. By requiring allinterested patrons (e.g. existing and new) to submit bids for seasontickets, venue owners will obtain a more robust market value for thetickets. Once the market value is determined for a particular section'sseason tickets, existing season ticket holders from prior years who didnot bid enough to meet or exceed the market value price for the tickets,but did bid enough to be within a predetermined percentage of the fairmarket value, would have an option (e.g. right of first refusal) torenew their season tickets at the fair market value. The existing seasonticket holders have a limited period of time following the closing ofthe bidding window to exercise this option. By encouraging existingseason ticket holders to be within a certain percentage, e.g., 20%, ofthe fair market value price, the existing season ticket holders willlikely submit a bid that is reasonable. When an existing season ticketowner's bid is not reasonable (e.g., within 20% of the fair marketvalue), it is probably fair to expect that the existing season ticketowner should lose this valuable inherent property right, since he or shewas likely understating the bid. Conversely, those existing seasonticket holders who bid at or above the market value receive theirtickets automatically. If a season ticket holder does not continue topurchase a season ticket, or changes the quality of seat from the priorseason, this option ceases for future seasons.

The electronic ticket can provide parking privileges identical to thosewhich are conventionally offered. The parking property right travelsalong with the ticket being purchased/sold, so that the owner of theticket in question also owns the parking property right. In other words,the parking right is bundled with the entry property right for certaintickets.

As discussed previously, the parking attendants can have radio frequencyreaders 36 that allow the attendants to instantaneously read amembership identification device and also determine whether the memberhas parking privileges. As vehicles enter the parking area of the venue,the patrons provide their membership devices to the parking attendant,who reads the device with the reader. Alternatively, the device could beplaced on the dashboard of the vehicle or hung on the mirror, and beautomatically read while it remains in the vehicle. The readercommunicates with the local payment server 32 and sends back averification notice that this particular ticket holder is entitled topark in the parking area. As the patrons enter the parking area, theparking attendant can provide the patrons with physical markersindicating that they are allowed to park in a reserved area, if desired.

As with the electronic tickets used for entry into the venue, this formof electronic ticket for parking results in increased liquidity andtransferability of ticket property rights. Once a patron enters theparking area, he or she will lose the ability to trade the ticket sincea portion of the property right that is affiliated with the ticket forthat particular event has been used. This property is akin to that of aticket holder who actually enters the venue itself; once a patron entersthe venue all trading privileges for the ticket cease and desist.

Playoff tickets present another type of special case. Regular seasonticket holders might be upset if, at the end of a season, they arerequired to reenter a normal ticket pool and bid for the opportunity toattend playoff games after they have spent an entire season attendinggames and they are required to reenter the bidding process forpurchasing tickets to playoff events. As part of a season ticket package(e.g., to give people a reason to purchase season tickets), the venueowner can provide all season ticket purchasers with the right topurchase playoff tickets (at a fixed face value or discount to marketvalue for their particular season ticket seat—akin to conventionalpreprinted face values) for the team's playoff tickets for each phase ofthe playoffs. The face value price or level of discount to market pricefor each ticket could increase or decrease, respectively, with eachround of the playoffs.

By providing this option to purchase pre-priced playoff tickets toseason ticket holders only, it allows the venue owner to significantlydifferentiate the season ticket package from general admission tickets.Although there is always a tradeoff between selling the option andcollecting the option value and strike price vs. waiting to see if thevenue owner's team makes the playoffs and selling the tickets at theiractual market value, the venue owner strongly differentiates seasontickets from general admission tickets by providing this property rightat the beginning of the season. Also, since this option can not be splitup over various games, it is a unique ticket property right for seasonticket holders only.

The option to purchase playoff tickets for season ticket holders canautomatically be part of the season ticket's property rights,translating into a higher market value on season tickets for the venueowner. This higher initial ticket market value in turn results in higherticket sales proceeds to the venue owner upon the initial sale oftickets to patrons, irrespective of whether the team makes the playoffs.

There are many incentives for patrons to provide each patron'smembership number when purchasing tickets for a group of people ratherthan using sub-accounts, including the ability for each patron to usetheir membership device at the venue to make purchases, lowertransaction fees, ability for each patron to control a ticket when theticket is linked to a unique membership number, etc. It may also bedesirable to make it easy for patrons to do so rather than having tomemorize or collect all of the membership numbers prior to placing anorder.

At the time a patron registers, or at any point in the futurethereafter, each patron can have the ability to list the name andmembership numbers of other members for whom they will typicallypurchase tickets or provide notification that they have extra ticketsavailable. This can be done by the patron knowing and directly enteringthe other members' required information, or by providing an inquiry andsearch capability where the person building the list can enter certaincritical information (e.g., name, address, member number, etc.) thatwill search the database 22 and provide a list of potential matches,allowing the patron to select the list members based upon the results ofthe search. Including other members on a given patron's list will onlyallow the owner of that list to purchase a ticket for another member,but not to sell tickets, purchase concessions, etc. All members placedon someone else's list can be notified that a certain member hasincluded them on a list of likely persons for whom a ticket is to bepurchased.

Approval for inclusion on any member's list must be provided by themember being named on the list before the corresponding billing andelectronic ticket property rights can be directly assigned to the listmember. Only after inclusion on a list is approved by the list membercan the list member be billed for charges incurred as a result of theprimary member's order. Also, electronic ticket property rights are notassigned without approval. However, electronic ticket property rightscan be transferred from one member to another at any point in time afteran electronic ticket is purchased.

If a member places an order for another member, and the member for whomthe electronic ticket is being purchased has not yet approved his or herinclusion on the purchasing member's list, then the member who isplacing the initial order or secondary trading order is billed for allacquired ‘unapproved’ electronic tickets with all property rightsassociated with each unapproved electronic ticket defaulting to one ofthe order placer's subaccount numbers. This means that all electronictickets (order placer's electronic ticket, intended subaccountelectronic tickets, and unapproved electronic ticket orders), other thanproperly approved list orders, will be billed to and be under thecontrol of the member placing the order, although the property rightsfor each electronic ticket will be assigned to individual member andsubaccount numbers.

In addition to the primary member's approach outlined above for placingother members on a list, the list members can themselves send a requestto be automatically added or deleted from any list at any point in time.In addition, the primary member can, with or without approval from alist member, remove any member from his or her list.

Whether a member is placed or elects to be placed on another member'slist, the member being placed on the list has the option of approvinghis or her inclusion on another member's list for only one specifiedevent or for any event. If the member is only approved for a particularevent, once the event is complete that member's information disappearsfrom the order placer's list.

Members are also able to create, name, and combine unlimited numbers oflist members who typically purchase electronic tickets or receivenotifications together. Many email programs allow ‘group mailings’ to bepredefined today. This grouping might consist of a group of family orfriends that typically attend events together, a grouping of a company'sfavorite clients for entertainment purposes, etc. The ticket exchangesystem keeps a history for each list member showing how manynotifications, electronic ticket purchases, electronic ticket transfers,etc. the primary member has carried out for that particular list member.

When a patron purchases an electronic ticket for a list member, anautomatic list dialogue box appears, showing (a) the primary member'slist members, (b) an indication whether the list members have beenapproved or are pending approval, and (c) whether they are approved fora specific or any event. The list member's membership number need not beshown on the list when placing orders because patrons do not typicallyknow (or care about) their list members' membership number, other thenwhen originally developing their list. However, the system stores acorresponding membership number in the background for each list membershown on a list. As an example, one list members listing in the dialoguebox could be “John Smith—Any” or “John Smith—MLBNYY0712” (particularevent identifier).

The list prioritizes the order in which list members are listed, basedupon how many electronic tickets the primary member and list customerhave purchased for each other in the past or if the list member has beenidentified for a particular event for which the primary member iscurrently placing an order. The primary member can place an order forhis or her own electronic tickets and then either tell a call centeroperator or use the Internet to click and drag members of the list intotheir order box if they are ordering more than one electronic ticket.The maximum number of sub-accounts can be included at the bottom of thelist box as well, so members can click and drag sub-account numbers ifthey desire. Once an order is placed and executed (electronic ticketsare purchased), the primary member and all list members can be notifiedof the order either via email, a toll-free or toll-bearing telephonenumber that is menu driven, an automated telephone calling service,first-class mail, or the like. The primary member will also have arecord of the order at the time the original order is placed.

By means of the features provided by the system, patrons have an optionto select whether they want to purchase electronic tickets for otherpatrons (as outlined above), or notify other patrons that they haveelectronic tickets available to be used for an event. While the system'snotification service will most likely be used by corporate electronicticket holders, all members will have the opportunity to use thisnotification service. In the case of the notification service, approvalby the list member is not required to be included on the primarymember's notification list. Of course, members would want to encouragetheir list members to be registered members prior to placing them ontheir notification service list, however the primary member could stilllist a non-member on their notification service list. If this non-memberwere to eventually use the primary member's electronic ticket, thenon-member would have to use a temporary electronic ticket.

When subscribing to the system's notification service, members and theirlist members will follow the same approach that is outlined above forentering the required information for each list member. However, therequired personal information for the notification service will alsoinclude the list member's contact information such as an InstantMessenger ID, email address, pager number, and the like, depending uponthe method of communication the list member prefers for notification. Inaddition, if the method of notification allows, each primary member willbe able to customize a number of notification announcements and selectthe announcement they wish to use for each notification. If the primarymember does not want to customize the message, a default announcementcan be employed, such as “Company XYZ would like to offer you X freeelectronic tickets to ‘event name’ on ‘event date’. If you areinterested and able to use these electronic tickets, please callxxx-xxx-xxxx or email us at xxxx@yyyy.com. Thank you.”

Notification of electronic ticket availability can be done prior toselling or assigning electronic tickets to a notice service list member.However, assigning or selling an electronic ticket to any list member bythe primary member is preferably only done by the primary member himselfor herself. In other words, the system facilitates the notificationservice, while all transactions for electronic tickets are executed bymembers themselves. Members are able to prioritize the order in whichtheir notification service list members or group of members are listedin their notification service list dialogue box. This provides eachprimary member with the ability to use their own criteria for rankinglist members for their notification service.

The overall flow of operations that occur within the electronic ticketexchange system is illustrated in FIGS. 5-8. FIG. 5 depicts the eventswhich occur in connection with an initial ticket offering. At step 60,information regarding an upcoming event is published, and a biddingwindow is opened at step 62. Once the window has closed, the marketsystem 50 determines the initial ticket prices for each level of seatingat step 64. For each patron whose bid was at or above the establishedprice, the payment system 24 debits the patron's account at step 66, andan electronic ticket token is transferred to each such patron's account.The outcome of the initial ticket offering is then communicated to thesuccessful bidders, at step 68.

FIG. 6 illustrates the operations that take place subsequent to theinitial offering. At step 70, patrons initiate the sale or purchase oftickets on a secondary market made available through the trading system52, by any of the available access mechanisms of the patron interface10. When a match occurs, the payment system validates the buyer'sability to perform the transaction, and then appropriately credits ordebits the members' accounts at step 72. The trading system 52 completesthe transaction by moving the electronic ticket token(s) from theseller's account to the purchaser's account, at step 74. The marketsystem 50 is updated at step 76, to reflect the executed tradeinformation.

FIG. 7 illustrates the operations that occur at the initiation of theevent. At step 80, seating system 48 determines an optimal configurationfor all of the tickets that have been sold. This configuration isdownloaded to the entry system server 40, at step 82. As additionaltickets are sold or exchanged during this time, the entry system serveris updated with the appropriate seating information. Once the venueopens its gates, patrons use their identification devices to enter theparking facilities and the access-control mechanisms, at step 84. Once adevice is employed at any of these points, the member identification istransmitted via a reader to the entry server at step 86, which forwardsthe information to the central server 26 at step 88, to prevent anyfurther trading of the electronic ticket. The entry server 40 queriesthe patron's account to see if an electronic ticket token is present forthe event, and authorizes access to the parking facilities and thevenue, as appropriate. In those situations where seats are assigned, asthe patron's identification device is read at the access-controlmechanism 42, the seating map 20 is checked and the printer at theaccess-control point produces a physical seating assignment for thepatron, at step 92.

FIG. 8 depicts operations that can occur during the performance of theevent. At steps 94 and 95, a concessionaire can scan a member'sidentification device and the universal product codes for purchaseditems. The price of each item is retrieved from a database at step 96,and the total amount due is calculated. This amount is provided to thelocal payment server 32 at step 98, where the transaction is validated.The individual transactions are queued at the local payment server, anduploaded to the primary payment server 28 at step 100.

In the foregoing example of the invention, most of the operations arecarried out at a central facility, and a portion of the processingoccurs at the individual venues. It will be appreciated, however, thatthe processing load can be configured in different manners. Forinstance, all operations could be performed at the central location. Inthis case, the access-control devices and the readers communicatedirectly back to the central server 26. This approach may be feasible ina situation where the communication links between the venues and thecentral location are reliable and capable of operation at high speeds.

From the foregoing, therefore, it can be seen that the electronic ticketexchange system of the present invention offers a number of advantagesto both the venue owner and the patron. Venue owners will be able toearn optimal total income yield for each event at the time tickets aresold. For popular events, laws of supply and demand will likely resultin a higher market value for tickets upon initial sale, resulting in thevenue owner receiving this money, not a ticket broker/scalper. Increasedaccess and liquidity of tickets for each game and season tickets willlikely result in a higher ticket market value. Season ticket holdershave a liquid and market-driven alternative when they can not attend anevent due to work, travel, or other personal reasons, likely resultingin their willingness to pay more for a season ticket. The same is true,but to a lesser extent, for general admission tickets.

Venue owners will be able to earn incremental money from event marketinginvestments because they can now measure incremental seats and marketprice change in tickets directly. Enhanced franchise value results fromthe patron paying a fair market value for enjoying the entertainment.Patrons more likely to feel like they received a fair deal.Significantly enhanced experience for patrons will likely createincreased value in the entertainment franchise's intangible goodwill.

Venue owners will significantly expand their potential patron market foreach event because all potential patrons, whether full-time members ofthe system or not, will know that when they want an ticket for an eventat one of the affiliated venues, they can simply go to the system toinvestigate event details such as timing, entertainers, cost per ticketfor each quality of seat, etc. This comfort in obtaining a fair marketvalue for the tickets and 100% accessibility will result in patrons whodid not previously know how to obtain tickets being able to knowinglyinvestigate and potentially purchase a ticket.

The size of potential patron base will be increased as a result ofincreased word-of-mouth due to market value pricing for lesser-knownacts' tickets. Because lesser known acts will likely have a lower marketvalue (vs. overpriced face value) for their tickets, it is likely thatthe base of patrons willing to pay a lower market value will increase.The venue owner will be better able to build patron loyalty, as well assignificantly develop and enhance patron loyalty programs. The venueowner will also have significantly increased access to information onpatron's purchasing behavior and demographic statistics. This can resultin increased effectiveness of event promotional and marketing efforts asa result of improved demographic information and ability to effectivelydirect market. Such information provides a stronger case to demonstratewhen a community does or does not support a franchise, and hence takenecessary actions.

The system also provides increased venue yield management for bothpopular and less popular entertainment events. Due to the fact that thevenue owner is selling attendance, rather than merely selling seats, thevenue owner should experience increased economic benefits fromadditional patrons attending events and paying for parking, concessions,merchandise, and the like. The venue owner will have more leverage withmerchandise and concession vendors due to increased yield management ofvenues. More people are likely to attend an event due to a moreefficient (information and transaction cost) secondary market fortickets. In addition, the nuisance effect from physical ticket scalpersis eliminated.

Patrons of entertainment at venues experience benefits as well. Forinstance, patrons can buy/sell/trade tickets for any event on aworldwide ticket exchange, resulting in complete information and anefficient market. Price gouging or limited information will no longerexist. At all times, every patron knows that they only have to pay afair market value for any ticket to any entertainment event. Certainevents will be more affordable for patrons to attend, expanding accessto live entertainment events to the general population. Membershiployalty benefits will transfer across entertainment events and venues.

Increased access to all events will result since patrons can purchase aticket for any entertainment event as long as they are willing to pay afair market value. No longer is purchasing a ticket solely a functionof: (a) personal contacts, (b) a rapid dial telephone, or (c) one's timeavailability to stand in a queue.

Patrons will have the ability to place bids for any season ticket forany quality of seating section. As long as the patron is willing to paya fair market value for their season ticket, the patron can alwaysimprove upon existing season ticket seating quality. Timing of bids canbe casual, since they can be changed prior to final submission, and theycan be entered over a period of time, eliminating the hassles ofqueuing. Increased liquidity for entertainment event tickets results,since the telephone and internet will provide anyone with theopportunity to buy/sell/trade tickets for any entertainment event,without geographic constraints. The process for purchasing tickets goesfrom a very arduous process of waiting in queues, rapid dialingtelephones, and frustration at selection to one of complete access andexcitement.

Increased liquidity of tickets adds convenience to both event and seasonticket holders, in that they are able to sell a ticket in the future ifnecessary (e.g., can not attend due to other commitments, work, etc.).This additional convenience will increase the patron's likelihood ofbidding for certain events and providing a fuller assessment of theirperceived market value for the event. Specific patron preferences can beacknowledged through venue and third-party direct marketing efforts ifthe patron desires.

Property rights that often accompany tickets such as guaranteed parking,restricted seating, etc. can all be transferred with the electronicticket and linked to a specific membership. Actual concession andmerchandising preferences can be taken into account in a real-timefashion when providing the goods. Instead of having a physical ticketsystem that functions like cash (e.g., bearer-bond market) and has theaccompanying risk of loss, theft, damage, counterfeit, etc., theelectronic ticket is much more secure and based upon a patron membershipand personal identification number. The use of electronic tickets alsoenhances the security element of the system.

It will be appreciated by those of ordinary skill in the art that thepresent invention can be embodied in other specific forms withoutdeparting from the spirit or essential characteristics thereof. Forinstance, in a preferred implementation of the invention, all of thevarious components described herein are integrated into a comprehensiveelectronic ticket exchange system. However, individual aspects of thesystem can be selectively employed without using other featuresdescribed herein. For example, the market-making mechanism can beemployed in conjunction with a paper ticket system, to establish aninitial sale price for the tickets that enables the venue owner toreceive the true market value for the tickets. Thereafter, the papertickets can be handled in a conventional manner. In anotherimplementation, electronic tickets can be sold at a pre-established facevalue, i.e. without initial bidding, and thereafter traded on asecondary market. Similarly, the dynamic seat assignment can be anoptional feature. For instance, seats can be assigned at the time thetickets are purchased, e.g. upon notification that an initial bid wassuccessful, rather than await an optimal configuration at a time closerto the start of the event. Other variations of the features of thesystem will also be apparent.

Furthermore, in a preferred implementation, the electronic ticketexchange system of the present invention is employed in connection withall of the tickets for every event at a venue. In some cases, however,it may be preferable to employ the system in a selective manner. Forinstance, tickets may be sold and exchanged through the system forcertain events, e.g. special, non-recurring events such as concerts,shows, etc., but not for other, more regular events. In anotherimplementation, the features of the system can be selectively used forcertain qualities of seating, such as season tickets and suites, whileusing more conventional ticketing approaches for general admissiontickets. Alternatively, the system might be employed for only thosetickets which are not sold by the venue's box office. Other variationsin the implementation of the invention are also possible.

The presently disclosed embodiments are therefore considered in allrespects to be illustrative, and not restrictive. The scope of theinvention is indicated by the appended claims, rather than the foregoingdescription, and all changes that come within the meaning and range ofequivalence thereof are intended to be embraced therein.

What is claimed is:
 1. A system for selling and exchanging electronictickets for entertainment events, comprising: a patron interface viawhich a first patron purchases an electronic ticket for an entertainmentevent at a venue from a vendor; a database storing: (i) identifyinginformation about at least the first patron and a second patron, and(ii) a token representing the electronic ticket purchased via saidpatron interface by the first patron, said token being associated withthe identifying information about the first patron that is stored in thedatabase; a trading system via which the electronic ticket for theentertainment event that was purchased by the first patron, andrepresented by the token stored in said database, can be transferred bythe first patron to the second patron, wherein the association of saidtoken is transferred from the identifying information about the firstpatron to the identifying information about the second patron withinsaid database; a payment system that stores profile informationregarding at least an account of the first patron and an account of thesecond patron, and that is configured to: (i) automatically debit theaccount of the first patron for the purchase of the electronic ticket,(ii) automatically credit the account of the first patron when theelectronic ticket is transferred to the second patron via said tradingsystem, and (iii) automatically debit the account of the second patronwhen the electronic ticket is transferred to the second patron via saidtrading system; and an entry system having at least one access controldevice with a reader at the venue of a current event, which isresponsive to presenting of identifying information pertaining to anentering patron at said reader to: (i) communicate with said database todetermine that the presented identifying information pertaining to theentering patron is associated with the token representing the electronicticket for the entertainment event which is the current event, and (ii)in response to said determination to automatically provide the enteringpatron who is determined to be associated with the electronic ticketwith physical access to the venue at which the entertainment event isbeing presented.
 2. The system of claim 1, further including a seatingsystem which determines an allocation of seats at said venue forelectronic tickets for the entertainment event.
 3. The system of claim2, wherein the seats are allocated on the basis of preferences submittedby the patrons.
 4. The system of claim 2, wherein said entry systemprovides patrons with an identification of seats that are allocated totheir electronic tickets at the time that entry is provided by saidaccess control device.
 5. The system of claim 1, wherein said paymentsystem automatically debits the account of the entering patron forpurchases of items made by the entering patron at the venue.
 6. Thesystem of claim 1, wherein said presented identifying information ispresented to said entry system by an identification device.
 7. Thesystem of claim 6, wherein said identification device is also used toprovide access to facilities associated with the venue.
 8. The system ofclaim 7, wherein said facilities include parking sites.
 9. The system ofclaim 6, wherein said identification device is also used to purchaseitems at the venue.
 10. The system of claim 6, wherein theidentification device is selected from one of the group comprisingwireless devices, PDAs, smart cards and magnetic cards.
 11. The systemof claim 6, wherein said identification device contains data thatidentifies the entering patron as a member of an organization affiliatedwith said system for selling and exchanging electronic tickets.
 12. Thesystem of claim 1, wherein the venue contains plural levels of seatingquality, and said trading system establishes a respective market foreach level of seating quality of the plural levels of seating quality.13. The system of claim 1, further including a market-making systemwhich establishes a price for entertainment event tickets based uponbids submitted by patrons.
 14. The system of claim 1, further includinga notification system which automatically provides a notification toindividuals that a patron has purchased tickets to an event and suchtickets are available to be transferred to said individuals.
 15. Thesystem of claim 1, wherein said patron interface enables patrons topurchase tickets to entertainment events for both themselves and otherpatrons as part of a group transaction.
 16. The system of claim 1,wherein said patron interface enables patrons to enter information whichauthorizes them for access to at least one entertainment event, saiddatabase stores said information regarding the patrons who areauthorized for access to said at least one entertainment event; and saidentry system checks the information stored in said database to determinewhether a patron is authorized for access to said at least oneentertainment event, and permits those patrons who are authorized toenter a venue at which the at least one entertainment event is beingpresented.
 17. A method for electronic ticket exchange and accesscontrol to events, comprising: receiving information regarding anelectronic ticket purchased by a first patron, via a patron interface,for an event at a venue, and storing a token representing the electronicticket purchased by the first patron in a database, said token beingassociated with identifying information about the first patron that isstored in the database; automatically debiting an account of the firstpatron, in a payment system, for the purchase of the electronic ticket;receiving information at a trading system that the first patron hastransferred the electronic ticket to a second patron, and transferringthe association of the token from the identifying information about thefirst person to identifying information about the second patron in saiddatabase; automatically crediting the account of the first patron anddebiting an account of the second patron in said payment system for thetransfer of the electronic ticket; in response to receiving identifyinginformation pertaining to an entering patron in a reader at the venue ofa current event, communicating with said database to determine that thereceived identifying information pertaining to the entering patron isassociated with the token representing the electronic ticket for theentertainment event which is the current event; and in response to saiddetermination, automatically enabling an access control device of thereader to provide the entering patron with physical access to the venue.18. The method of claim 17, further including the step of determining anallocation of seats at said venue for electronic tickets for the event.19. The method of claim 18, wherein the seats are allocated on the basisof preferences submitted by patrons.
 20. The method of claim 18, furtherincluding the step of providing patrons with an identification of seatsthat are allocated to their electronic tickets at the time that entry isprovided to the venue.
 21. The method of claim 17, wherein said receivedidentifying information pertaining to the entering patron is presentedto said reader by an identification device.
 22. The method of claim 21,wherein the identification device is selected from one of the groupcomprising wireless devices, PDAs, smart cards and magnetic cards. 23.The method of claim 17, wherein the venue contains plural levels ofseating quality, and further including the step of establishing arespective market for each level of seating quality of the plural levelsof seating quality in said trading system.
 24. The method of claim 17,further including the step of establishing a price for entertainmentevent tickets based upon bids submitted by patrons.
 25. The method ofclaim 17, further including the step of automatically providing anotification to individuals that a patron has purchased tickets to anevent and such tickets are available to be transferred to saidindividuals.